All too often start up hedge fund managers do not realize that starting a hedge fund is really starting a business and that considerations need to be given to managing the business as well instituting the trading program.  In a perfect world the hedge fund manager would be able to simply implement his program and have all of the back office, IT, compliance and other services outsourced.  One option obviously is a hedge fund hotel which provides this type of support to beginning managers.  For those managers who do not use hedge fund hotels, greater emphasis needs to be placed on understanding the business they are getting into.

Continue reading →